The Aloha Company announced that it would stop paying dividends for the next 3 years, for its common stock. It expects to start paying a dividend of $2 per share at the end of year 4, with the dividend growing at a constant rate of 1% each year, thereafter, forever. After the announcement, Alohas shares traded at $5 per share. Analysts estimate Aloha Companys cost of equity to be 15%. Aloha Company has an issue of preferred stocks which pay a dividend of $1 per share. The shares trade at $5 a share. (a) Compute the value today of a Aloha Company common share based on the dividend discount model. Based on the computed value of the share discuss what an investor who owns Aloha Company shares should do, i.e. buy more or sell them.